'File 8/16 Bahrain Intelligence Reports' [‎171r] (341/432)

more than a fortnight’s supply hero. However, nearly 1,000
tons of wheat arrived here from Canada at the beginning of
August and constitute a reserve from which the flour supply
can be supplemented when necessary. A scheme for the issue
of flour to bakers employed and paid by the Bahrain Govern
ment, instead of to private individuals, and of ration cards
to the populace for bread instead of flour is being worked
out.
A Food Control Committee has been appointed to assist
and advise the Food Controller over food questions and to
share his responsibility. Hitherto the Committee has nev^r
failed to disagree with the Food Controller, notably as regards
the disposal of the wheat referred to above. Though it should
constitute some five months' supply, the Committee recommended
that almost the whole of it should be distributed during the
one month of Ramadhan as a solace to the people for the recent
shortage. This suggestion was vetoed by the powers that v
but the wheat reserve is likely to have decreased substantially
by the end of Ramadhan, unless adequate supplies of flour
arrive in the meantime. The authorities have been asked to
distribute the wheat as economically as possible.
(ii) For Saudi Arabi a. On the 24th August the German
radio announced that the British scheme for supplying Saudi
Arabia with food supplies from India had broken down owing to
the absence of the supplies. This announcement was made when
the final arrangements were in fact crystallising and it was
hoped that the scheme was about to be launched. But agree
ment on details has not yet been reached by all concerned
and the scheme still hangs fire. The Shaikh of Bahrain has
been informed of the proposals and welcomes them, as he hopes
that the price control which the scheme will presumably in
volve will put an end to the merchants’ present practice of
diverting all supplies possible from Bahrain to the mainland
where profits are greater.
174. Currency .
(i) The price of sovereigns having, as already reported,
remained more or less stationary at Bs 59 during the first half
of August, declined to Rs 57 on the 24th and finally closed at
Rs 57/8/- on August 31st. These quotations are purely nominal,
as very little business in sovereigns is being done.
(ii) Reference para 133 (iii) (b) of Intelligence Summary
No.13 of 1942, which reported large exports of rupee notes
from Bahrain to Kuwait.
On August 20th the Manager of the Eastern Bank,
Bahrain, reported that some 7 to 8 lakhs One lakh is equal to one hundred thousand rupees worth of rupee notes
had gone out of Bahrain in the past 3 weeks, apparently to
Kuwait, and requested Government assistance in obtaining air
freight from Karachi for an immediate consignment of 4-J lakhs One lakh is equal to one hundred thousand rupees
of notes and for such consignments thereafter as might be
necessary; the alternative being for all drawers of other
than local cheques or drafts to be charged 12% commission on
account of the cost to the Bank, in freight and insurance, of
bringing the notes by sea. Fs 4J lakhs One lakh is equal to one hundred thousand rupees of notes arrived on
the 24th August, after having awaited air space at Karachi for
over a fortnight. The Bank has already brought over Rs 41
lakhs One lakh is equal to one hundred thousand rupees of notes from India since the beginning of this year,
as against an average of Ps 10 lakhs One lakh is equal to one hundred thousand rupees per year in previous
years.
The normal process now appears to be for the notes
exported from Bahrain to be changed in Kuwait into Dinar notes,
which are taken to Basra and converted into Rupee drafts on
India.
(iii) There is a great shortage of small change in Bahrain,
/ due